Markets have taken a sharp hit in the wake of newly announced tariffs from the Trump administration and retaliatory moves from U.S. trade partners. If you’re feeling unsettled, you’re not alone. But these types of pullbacks, while uncomfortable, are not uncommon. They tend to happen once or twice a decade and are often followed by recovery. 

Market drops of 20% or more may feel alarming, but they’re not unusual. In fact, they tend to happen once or twice a decade. While each pullback is unique in its trigger, like these recent tariff fears, the patterns of recovery are surprisingly consistent over time.

Market Pullbacks Are Normal And Usually Temporary

Let’s take a look at past market corrections to put today’s turbulence in perspective. These drops may have felt severe at the time, but investors who stayed the course came out stronger on the other side.

Period	Percentage Drop	Duration (in Months)
December 1961–June 1962	-28.0%	6.4
February 1966–October 1966	-22.2%	7.9
November 1968–May 1970	-36.1%	17.9
January 1973–October 1974	-48.2%	20.7
September 1976–March 1978	-19.4%	17.5
January 1981–August 1982	-25.8%	19.2
August 1987–December 1987	-33.5%	3.3
July 1990–October 1990	-19.9%	2.9
March 2000–October 2002	-49.1%	30.5
October 2007–March 2009	-56.8%	17.0
February 2020–March 2020	-33.9%	1.0

Source: Factset, S&P500 Index. Past performance is not indicative of future results. You cannot invest directly in an index.

Despite these sharp drops, the market has always recovered. Investors who stayed invested through the downturn were rewarded when the market rebounded.

You Can’t Time The Market: Pulling Out Could Cost You

It’s tempting to want to move to cash or switch entirely to conservative investments during times like these. But doing so could jeopardize your long-term goals, especially retirement. Timing the market perfectly is nearly impossible. And if you miss even a few of the best days in a recovery, the impact on your portfolio can be significant.

This week, on April 9, 2025, the S&P 500 soared more than 9.5% in a single day, one of the best single days in market history. It was a stark reminder that the biggest gains often come out of nowhere, and usually when sentiment is at its lowest. 

Investors attempting to time the market during periods of volatility may inadvertently miss out on substantial long-term gains. For example, looking back over the past 30 years from 1995 to 2024, the growth of $10,000 in the S&P 500 Index significantly diminishes when investors miss the 10, 20, or 30 best-performing days.

  

• Fully invested: $10,000 grows to $224,278 

• Miss the 10 best days: $102,750

• Miss the 20 best days: $60,306

• Miss the 30 best days: $38,114

That’s a steep cost to pay for missing just a handful of days of critical growth.  

And sometimes those best days often come right after the worst. In March 2020, for example, some of the best and worst days for the S&P 500 occurred within days of each other​. This happened again April 2025, in the days following President Trump’s reciprocal tariff announcement. Trying to jump out before the bad, and back in before the good is almost impossible. 

Financial Planning Helps You Stay Grounded 

Instead of reacting emotionally, it’s important to review your overall goals/objectives and your long-term financial plan. A strong financial plan is built to withstand turbulence. It’s created with the understanding that markets will fluctuate—and that long-term success comes from discipline, not prediction. 

A sound plan helps you avoid rash decisions, and instead guides you through both good times and bad. It also helps you invest based on goals and timelines, not headlines or market noise. 

Volatility Creates Opportunity 

Pullbacks test investors. But history shows that those who stay disciplined and stay invested are usually rewarded. Big market moves, like we just saw on April 9, don’t come with warning signs. If you’re not in the market, you may miss them. And missing them can cost you dearly. 

So while it’s okay to feel uneasy, remember: your financial plan was designed for this. The best way to weather volatility is to stay the course, stay diversified, and stay focused on your long-term goals.